Korean cement hit by USD19m losses as rail strike ends

Korean cement hit by USD19m losses as rail strike ends
Published: 31 December 2013

Tagged Under: Korea Asia Cement Hyundai Cement 

The Korean railroad workers union called an end to its 22 day strike on December 30, leaving the domestic cement industry to count its losses.

The cement industry relies on railway transportation for more than 30% of its transportation needs. The cement companies estimate that their combined loss for the 22 days of strike would be KRW20bn (USD19m), according to a report in the Korea Economic Daily. This was far worse than the strike in 2009 which lasted just eight days.

The Korea Cement Association said its member firms suffered KRW800m to KRW900m of losses each day throughout the strike due to disruptions in transportation for bituminous coal input and cement output.

Asia Cement's plant in Jecheon was forced to scale down its operations from December 14, on the sixth day of the labor stoppage. The Yeongwol plant of Hyundai Cement had to move forward its regular maintenance schedule to be held in January and cease operation at one of its two cement kilns.